What are the HMRC tax categories for transactions?

Please note that this feature is currently in testing and is only available to a small set of our business customers.

There are a number of different categories used by HMRC when you file your taxes to help you separate and organise your business finances.

Please be aware that Monzo cannot provide any advice on how to categorise your individual finances, as we are not regulated to provide tax advice. If you are not sure which category to use, please consider contacting HMRC, researching the categories online, or getting professional tax advice.

Here is a list of the tax categories available with Monzo and some examples:

Money you earn from your main work or services.

Examples: customer payments, project income, product sales.

Money linked to your business but not from your usual trading activities.

Examples: grants, compensation, tips, selling old equipment.

Money you receive that isn't related to your business.

Examples: gifts, personal income, refunds unrelated to your business.

Day-to-day office and admin costs that help you run your business.

Examples: stationery, work phone bills, software subscriptions.

Money spent promoting or marketing your business.

Examples: online ads, flyers, sponsorship.

Money spent hosting or entertaining clients or customers.

Examples: client meals, hospitality events, taking a customer to a show.

Travel or vehicle costs for work trips or running your business on the move.

Examples: fuel for business journeys, train fares, mileage claims.

Items or materials you buy to sell on or use directly in your work.

Examples: stock, raw materials, supplies.

Adjustments for equipment or vehicles that lose value over time.

Examples: equipment write-downs, selling business tools at a loss

Banking or finance fees for running your business.

Examples: business account fees, credit card charges, payment processing fees.

Interest you pay on loans or borrowing used for your business.

Examples: loan interest, overdraft interest, equipment finance interest.

Fixing or maintaining equipment, tools or business property.

Examples: repairing machinery, maintaining tools, fixing your workspace.

Money you pay subcontractors or freelancers to help deliver your work.

Examples: freelance support, tradespeople you hire, CIS subcontractors.

Costs for keeping your business space running.

Examples: rent, utilities, business insurance.

Payments to experts who support your business.

Examples: accountants, legal advice, consultants.

Payments to employees or people who work for your business.

Examples: salaries, pensions, staff benefits.

Other costs for running your business that don't fit another category.

Examples: business subscriptions, licences, small one-off purchases.

Money spent on something that wasn’t for your business.

Examples: your home food shopping, medical prescriptions

Payments to yourself from the business.

Examples: Personal funds, reimbursed expenses

Payments to HMRC from your business.

Examples: Income Tax, National Insurance Contributions

Money moved into or out of the business account that does not relate to your taxable income.

Examples: Mistaken transfer, Income for another business

Moving money between accounts that both belong to the same business.

Examples: external savings, second business account